Rate of interest entitlement: nominees receive saving bank rate from depositor's death until SCSS account closure.
Where a depositor under the Senior Citizens Savings Scheme dies before maturity and the nominee or legal heir approaches the bank to close the account, the nominee or legal heir is entitled to interest at the Saving Bank rate from the date of the depositor's death until the date of account closure.

Centralised processing of stuffing permissions institutes a dedicated cell to handle and monitor export container stuffing approvals.
Permission requests for stuffing export containers at factory premises and private bonded warehouses, and for assembling machinery inside port premises, are to be centralised at the Custom House. A newly created Factory Stuffing Permission Cell (FSP Cell) will receive, process, monitor and review all such applications. Trade participants are asked to report any difficulties to the department.

Overseas investment by venture capital funds permitted subject to SEBI allocation and RBI/SEBI conditions for investments in foreign companies.
Indian Venture Capital Funds registered with SEBI are permitted to invest in equity and equity linked instruments of offshore venture capital undertakings subject to an overall external limit and to SEBI regulations; SEBI will allocate limits to individual VCFs and may impose terms and conditions. SEBI registered domestic VCFs must obtain SEBI's prior approval for offshore investments and need no separate Reserve Bank permission. The SEBI (VCF) Amendment, 2006 defines "foreign company" and permits VCF investments in securities of foreign companies subject to RBI and SEBI conditions.

Foreign currency accounts for ship manning agencies allowed with specified remittance, reserve, and facility restrictions.
Authorised Dealer Category I banks may permit ship manning and crew managing agencies in India to open non interest bearing foreign currency accounts for business transactions; credits only by inward remittances from the overseas principal through normal banking channels, debits for ship/crew management expenses, no credit facilities against funds in the account, banks must meet reserve requirements, no EEFC facility for these remittances, and accounts maintained only for the agreement's validity period.

Reimbursement of pre-incorporation expenses permitted up to specified threshold on statutory auditor certification, easing remittance requirements.
Authorised Dealer Category I banks may permit drawal of foreign exchange for reimbursement of pre-incorporation expenses up to a higher prescribed ceiling - computed as a proportion of investment brought into India or a fixed benchmark amount, whichever is higher - on the basis of certification by statutory auditors, pending formal amendment of the Current Account Transactions Rules; banks should notify constituents and note that the directions are issued under statutory powers and without prejudice to other legal permissions.

Remittance limit liberalisation for consultancy services allows higher foreign payments for infrastructure projects subject to bank verification of bonafides.
The circular authorises Authorised Dealer Category I banks to permit higher per project remittances for consultancy services procured from outside India by Indian companies executing defined infrastructure projects, after verifying the bonafides of the transaction; the infrastructure sectors covered are listed, while remittances in other cases remain subject to the existing per project threshold and formal amendments to the Current Account Transactions Rules will be notified separately.

Remittance for corporate donations permitted for specified educational and technical purposes subject to limit based on foreign exchange earnings and approvals.
AD Category I banks may authorise corporate remittances for creation of chairs in reputed educational institutes, donations to funds promoted by educational institutes (not investment funds), and donations to technical institutions or bodies in the donor's field, subject to a cap of one percent of foreign exchange earnings over the previous three financial years or a prescribed upper monetary limit, whichever is less. Remittances for other purposes require submission to the Reserve Bank with details of foreign exchange earnings for the last three years, company background, donation purpose and likely corporate benefits. Existing small value donor facility continues.

External Commercial Borrowings prepayment limit increased, permitting prepayment without prior central bank approval subject to minimum maturity.
AD Category I banks may permit prepayment of External Commercial Borrowings up to an enhanced threshold without prior Reserve Bank approval, subject to compliance with the applicable minimum average maturity; the amendment is effective immediately, subject to review, and consequential FEMA amendments will follow.

CIF value limits for consignments through specified border ports, and Sikkim trade registration accepted instead of PAN.
Amendments to the Handbook of Procedures revise para 2.8 to impose per consignment CIF value ceilings for permissible goods traded with China via Gunji and Namgaya Shipkila ports and a distinct ceiling for Nathula; and Appendix 1 is amended to permit Sikkim residents to submit a State trade tax/sales tax registration number in lieu of a Permanent Account Number when applying for an Importer Exporter Code.

Permanent Account Number as sole identification for securities market transactions strengthens KYC and mandates PAN linked records and verification.
PAN is mandated as the sole identification number for all securities market participants and transactions; intermediaries must link client databases and transactions to PAN, collect and verify PAN cards and cross check details online, while exchanges and depositories must enable PAN based querying, amend rules, notify members, and report implementation status to the regulator, effective July 2, 2007.

Export warehousing extension: Sholinghur added to permitted locations, enabling registration of export warehouses and facilitating trade.
Extension of the export warehousing facility to Sholinghur, Vellore district, Tamilnadu by amending paragraph 2(2) of the Board's circular under the Central Excise Rules, 2002 to include Sholinghur in the list of places where warehouses for excisable goods for export may be established and registered; trade and field formations are to be informed, receipt acknowledged, and a Hindi version issued.

Empanelment of chartered accountants: invitation for qualified professionals to provide advisory and audit services in company liquidations.
Invitation for empanelment of qualified Chartered Accountants with preferably five years' experience to provide advisory, auditing and related services for companies in liquidation under the supervision of the Official Liquidator and the High Court; terms to be fixed by the High Court and other conditions to follow the Companies Court Rules. Applicants must submit name, contact details, job/training profile and nature of services in a sealed envelope to the Official Liquidator (A.K. Chaturvedi) by the stated deadline.

Donor deduction protection preserved even if donee approval or notification is later withdrawn, securing donor tax benefits.
Amendments clarify timelines and procedures, extend donor-protection for deductions where donee approvals or notifications are later withdrawn, require audit reports (Form No.10BB) for certain exempt entities exceeding the basic non-chargeable threshold, expand withholding obligations to rent, royalty and specified receipts, tighten payment traceability by requiring account payee instruments, enable Assessing Officer rectification where convertible foreign exchange is subsequently brought into India, revise penalty limitation and revision provisions, and change rounding of tax and refunds to the nearest multiple of ten rupees.

Salient features disclosure permits sending summary annual account statements instead of full reports, with full reports provided on request.
Amendment to Clause 32 permits listed companies to send a statement containing the salient features of the Balance Sheet, Profit and Loss Account and Auditors' Report to each shareholder instead of the full annual report, provided that the company shall send the complete Balance Sheet, Profit & Loss Account and Auditors' Report to any shareholder who submits a written request; other Clause 32 disclosure requirements remain unchanged and the amendment is effective immediately.

Waiver of interest charges for migrant and resident taxpayers extended to cover the 2007-08 assessment year under tax administration orders.
Waiver of interest under section 234A and section 234B is extended for the assessment year 2007-08 to migrant assessees of the Kashmir Valley and to assessees who reside in, or have their principal place of business in, the Kashmir Valley, for the period up to the date of filing the return of income or up to 31-03-2009, whichever is earlier.

Secondary and Higher Education Cess accounting treated as Receipt Awaiting Transfer until new heads are opened.
A one percent Secondary and Higher Education Cess on excisable goods, imports and taxable services is to be provisionally deposited and accounted under the Receipt Awaiting Transfer (RAT) minor head within existing major revenue heads for customs, union excise duty and service tax pending opening of permanent Heads of Accounts by the Controller General of Accounts; amounts held under RAT will be transferred to the new heads when they are opened.

Secondary and Higher Education Cess to be provisionally recorded under Receipt Awaiting Transfer pending new heads of account.
Collections of the new Secondary and Higher Education Cess of 1% on excisable goods, imports and taxable services must be provisionally accounted under the Minor Head "Receipt Awaiting Transfer" (RAT) within the Major Heads for Customs, Union Excise Duty and Service Tax using the specified codes; amounts held under RAT will be transferred to the new Head of Account when opened by the Controller General of Accounts.

Line of Credit terms for government exports require India-origin supplies, utilisation limits, GR/SDF reporting and commission rules.
Exim Bank provided a Line of Credit to finance eligible project and supply contracts for Sudan, requiring at least 85% of the contract price to be supplied from India or be of Indian origin. The Credit Agreement is effective from late March 2007 with specified terminal utilisation periods for project and supply contracts; shipments must be declared on GR/SDF forms. No agency commission is payable under this LOC, though exporters may remit commission from their own resources or EEFC balances after full realisation and compliance with prevailing rules. Directions are issued under FEMA and AD Category I banks must inform exporters and obtain full details from Exim Bank.

Quarterly statement acknowledgement requirement clarified: deductors must quote issued acknowledgement numbers or state 'Not Available' if pending.
The amendment requires deductors to quote the Acknowledgement Number for each Quarterly TDS statement as provided by the TIN Facilitation Centre or NSDL; only acknowledgement numbers actually issued to the deductor must be quoted. If the last quarterly statement has not been furnished and an acknowledgement number is unavailable at the time of issuing Form 16 or Form 16A, the deductor may record "Not Available as the last Quarterly Statement is yet to be furnished."

Bank guarantee requirement for bonded warehouses reaffirmed to ensure uniform customs security and safeguard duty liabilities.
The circular mandates uniform compliance with earlier procedures requiring a security by cash deposit or bank guarantee for goods classified as sensitive in both Private Bonded Warehouses and privately owned Public Bonded Warehouses, affirms that non-sensitive goods are to be secured by double-duty bond with surety, preserves commissioner discretion to demand guarantees where bonder transactions are doubtful, and instructs field formations to notify trade and acknowledge receipt.